Bankruptcy is a powerful tool that can help people take back control over their financial situation. While this option has many potentials to eliminate most of a person’s debt, it cannot remove all forms of debt. What kind of debt can Chapter 7 bankruptcy discharge for applicants?

People should know about debt because there are two types of it: secured and unsecured debt. The primary difference in these debts is that secured debts have some collateral tied to them, such as a home or car loan. Unsecured debts do not have any collateral attached to them. Chapter 7 bankruptcy can eliminate forms of unsecured debts such as:

Credit card debt

Debt that a person places on their credit cards is a primary example of what Chapter 7 bankruptcy can discharge. While this feature appeals to most applicants, this does not mean they can go on a shopping spree before applying for bankruptcy. The government reviews spending histories and will exempt any spending in this manner from the debt discharge.

Medical debt

A sudden injury or illness can cost a patient tens of thousands of dollars or more. When the minimum payments alone are keeping a debtor from getting ahead, bankruptcy may be the best choice to help someone get out from under all that debt.

Utility bills

Falling behind on electricity, water, and gas bills can be an extreme worry for many people. Chapter 7 bankruptcy can clear away past due debts and help you keep the lights on at home.

See what bankruptcy can do for you

Bankruptcy is not a sign of failure or ineptitude. It is a sign of someone who wants to take back control over their life and start with a clean slate. Bankruptcy attorneys can help clarify the total debts you can discharge with Chapter 7 bankruptcy, and help you succeed in your application.